Correlation Between Morgan Stanley and Select Fund
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Select Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Morgan Stanley and Select Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley Multi and Select Fund I, you can compare the effects of market volatilities on Morgan Stanley and Select Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Morgan Stanley with a short position of Select Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Select Fund.
Diversification Opportunities for Morgan Stanley and Select Fund
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Morgan and Select is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Multi and Select Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Fund I and Morgan Stanley is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Morgan Stanley Multi are associated (or correlated) with Select Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Fund I has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Select Fund go up and down completely randomly.
Pair Corralation between Morgan Stanley and Select Fund
Assuming the 90 days horizon Morgan Stanley Multi is expected to under-perform the Select Fund. In addition to that, Morgan Stanley is 1.69 times more volatile than Select Fund I. It trades about -0.21 of its total potential returns per unit of risk. Select Fund I is currently generating about -0.21 per unit of volatility. If you would invest 12,794 in Select Fund I on December 4, 2024 and sell it today you would lose (636.00) from holding Select Fund I or give up 4.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley Multi vs. Select Fund I
Performance |
| Timeline |
| Morgan Stanley Multi |
| Select Fund I |
Morgan Stanley and Select Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Select Fund
The main advantage of trading using opposite Morgan Stanley and Select Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Select Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Select Fund will offset losses from the drop in Select Fund's long position.| Morgan Stanley vs. Glg Intl Small | Morgan Stanley vs. Barings Active Short | Morgan Stanley vs. Shelton Emerging Markets | Morgan Stanley vs. Rbb Fund |
| Select Fund vs. Ultra Fund I | Select Fund vs. International Growth Fund | Select Fund vs. Ultra Fund A | Select Fund vs. Value Fund I |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |